stories of exploitation - impact international
TRANSCRIPT
March 2021
Stories of exploitation: Saudi Arabia must protect financial rights of migrant workers
I. Introduction
II. Migrants in Saudi Arabia
III. Financial restrictions
IV. Why do they come?
V. Action needed
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Contents
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I. Introduction
Saudi Arabia is a nation built by modern-day slaves. Despite the
international human rights regime, the government has honed a
system of labourer exploitation so entrenched that it pervades
every fiber of society.
One aspect of that web of control is the ability of sponsoring
employers to restrict migrants’ ability to establish financial
independence by opening bank accounts and take out loans.
And although the kingdom passed a law late last year awarding
more rights to migrants, it appears that workers hired to support
specific households (and then often used for a wide variety of
work, including construction) are exempt from those protections.
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II. Migrants in Saudi ArabiaThe estimated 13 million migrants who live in Saudi Arabia came to the country from
India (the largest contributor, at 4 million), Pakistan, Kenya, Bangladesh, Yemen
and Ethiopia. Seeking income to send to their families, they labour in companies,
organisations and households.
There are two classes of migrants who come to Saudi Arabia for work: white-collar
professionals who are handsomely paid and poor, manual laborers. The latter
class of workers are recruited by agents who receive a commission from Saudi
employers. The jobs for which they are recruited are primarily nonprofessional
workers, such as housekeepers, nannies, vehicle drivers, construction workers and
shop staff. A work contract is usually agreed upon but rarely honored.
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III. Financial restrictionsTraditionally, migrant workers are governed by the infamous kafala sponsorship
system, which enables blatant human rights violations by giving their employers
almost total power over them. Employer-sponsors (kafeels) control when migrants
enter and exit the country. They also can prohibit workers from changing jobs
or visiting their home country without permission. Moreover, workers must seek
employers’ permission to complete tasks as basic opening a bank account and
taking out a loan. This concentration of power in the hands of the sponsor opens
the door to abuse and exploitation—a form of slavery
On top of all that, the kingdom imposes a variety of taxes that must be paid by
foreign workers and their family members. Beginning in 2017, for example, Saudi
authorities required an annual fee be paid for each person accompanying a
worker, initially set at 100 riyals, then increased by another 100 riyals each in 2018
and 2019. In 2020, despite the pandemic the fee was increased by an additional 400
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riyals. This means each worker now must pay 4,800 Saudi riyals (1,200$) annually
for each accompanying person—an astronomical amount in light of their low
wages.
Other fees must be paid by the employers, with the amount depending the
proportion of foreign vs. Saudi nationals in their workplace. However, in most cases,
workers have to pay the amount themselves. If the number of foreign workers is
larger than Saudi nationals, the migrants must pay 800 Saudi riyals per month. If
it is the other way around, foreign workers only pay 700 riyals. In total, the required
fees often exceed the pay labourers receive from their work, forcing them to leave
the country (which has been difficult during the pandemic.).
Responding to international criticism of the kafala system, Saudi Arabia passed
a set of reforms in October that became effective March 14. Domestic workers,
however, are not included.
Banking servicesSaudi banks classify migrant bank accounts as “high risk,” and thus
impose a number of conditions:
. 1 Banks require an official request from the employer, including the nature
of the migrant’s work, the purpose of the account, the wage paid and the
sources of any other income. The migrant’s work permit and passport must
also be submitted.
. 2 Once the account is opened, the migrant is issued an ATM card only; personal
checks and credit card are not allowed.
. 3 If migrants want to leave the country permanently, the banks immediately
freeze their accounts and require the money to be withdrawn.
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Migrants typically come from villages and urban slums where opportunities
to earn a livable income are limited, pushing them to seek employment in Saudi
Arabia. Numerous hiring agents act as liaisons to employers, who promise good
jobs and a stable life. However, these agents frequently dupe the job seekers,
misleading them about the nature of the employment, the pay and the contract
terms.
Once the workers arrive in Saudi Arabia, the migrants find themselves virtually
enslaved. If the kafeel reports any irregularity to the Ministry of Interior, the police
immediately arrest, detain and deport the worker.
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Migrants come to Saudi Arabia primarily for economic reasons. Before they
arrive, they sign a contract promising an acceptable wage. However, when
the migrants start working, they are often paid only half of what was promised.
While the Saudi government advises employers to pay a minimum wage of
3,000 riyals a month, it is not strictly followed and isn’t applied to migrant
workers in practice.
Discrimination also takes place in the form of lower payments for women.
Women are among the most marginalized of the migrants in Saudi Arabia.
They are often paid a paltry wage of 1,000 riyals (266 USD) a month or less,
making it almost impossible to send much back home after they pay their own
expenses. Sometimes, women are not paid at all. In contrast, male migrants
earn a wage of around 1,500 riyals.
IV. Why do they come?
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Stories of Indian workers
India is the largest country of origin for international migrants as well as the
world’s top recipient of remittances.
One incident reported to a human rights group in West Bengal, India, involves
a young man named Yusuf Ahmedi, a resident of Bihar who traveled to Riyadh
to work in a petrol station. However, his sponsor paid his wages irregularly and
over time, increased Yusuf’s work hours. Yusuf requested the salary due him so
he could send it home, but no action was taken. After a few months, Yusuf was
terminated and his passport and work visa withheld by his sponsor. Yusuf›s
mother last heard his voice on the telephone, assuring her he would find a way
to return home. Since that last call, Yusuf has not been heard from.
Manu, a young tea stall worker in India’s Punjab, was sent to Saudi Arabia by his
parents so he could send money home. Manu started working at a construction
site but was not allowed holidays or adequate rest. He was paid half the
promised wage and was unable to send money to his parents.
Another migrant, -33year-old Isher, told ImpACT: “I have six siblings
who live with my parents in India. I came to Saudi Arabia mainly to
send them money to cover their expenses. But when I came here, I was
surprised that I could not open a bank account without the permission
and help of my employer. I currently don’t have an account, simply
because he does not want to help me open one.”
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On paper, the government of India has taken steps to help migrants’ welfare. For
example, it established a minimum wage that must be reflected in employment
contracts. However, enforcement on the ground is quite another matter. Indian
migrants have tried complaining to their embassy in Saudi Arabia, but to no
avail. Some migrants suspect that embassy personnel cooperate with the
corrupt kefala system.
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The kingdom hosts more than 2 million Pakistani migrant workers, making them
the second-largest migrant community in Saudi Arabia. The flow of migrants is
driven by Pakistan’s high unemployment, rampant corruption, bad governance,
tenuous security and political uncertainty. Even those who are employed find
it difficult to satisfy the basic needs of their families. The minimum wage set
by the government of Pakistan is 17,500 PKR, which is equivalent to 112 USD per
month. Domestic workers are paid even less than that. With such a low income
and a growing rate of inflation, millions of Pakistanis cannot afford three meals
a day. An estimated 22.8 million children are out of school and a majority of
them must work to support their families. In such conditions, uneducated and
low-skilled workers look for employment opportunities in foreign lands.
A mafia-like industry has developed in response. An agent charges a heavy fee
to secure a job in the KSA. The International Labour Organization reports that
low-skilled workers pay 3,500 USD on average to secure a job in the kingdom.
Eighty per cent of that amount goes to the agent. Workers pay these costs from
their life savings or by borrowing from others, with the expectation that once
they land in the kingdom they will earn enough to repay the debt. However,
they only find themselves in another kind of trouble.
One Pakistani migrant working in a construction company described to ImpACT
a chronic lack of payment for his service: “My employer has withheld my salary
for months now. My family is starving back home and I am starving here. I want
Stories of Pakistani workers
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to leave this work but my employer has possession of my passport and iqama and
without them, I cannot step out of the premises.”
A Pakistani driver who has worked for a Saudi family since 2018 told ImpACT
another story: “I am working 14 to 16 hours a day but I am making only 1,500 riyals
(400 USD) a month.” That is more than he made in Pakistan, but his employer in his
home country also paid for his food. Now he regrets his decision to come to the
kingdom: “I am making more than in Pakistan, but after deducting the cost of food,
the iqama and the interest on the loans I took out for the visa and agent fees, I am
left with nothing.”
However, many workers like him cannot afford a return ticket to their home
countries and thus get trapped in a cycle of debt.
During the pandemic, the situation has worsened. Many Pakistani workers are
forced to live in congested camps. One worker told ImpACT, “I was living with seven
other workers in a small room with only two mattresses.” Many employers laid off
their workers and refused to pay their accumulated salaries. The workers were
left with no place to live. One worker said, “We cannot leave our fellows starving to
death on the road, so we accommodate them in our own rooms. That leaves us
with very little food; we can eat only one meal a day.”
The kingdom of Saudi Arabia and the government of Pakistan have strong bilateral
relations. The countries share cultural ties and cooperate economically. During the
2019 state visit of Crown Prince Muhammad Bin Salman to Pakistan, Prime Minister
Imran Khan requested that the prince treat the 2.5 million Pakistanis working
in the KSA as his own. Muhammad Bin Salman replied, “Consider me Pakistan›s
ambassador to Saudi Arabia.» However, the reality on the ground is quite contrary
to his statements.
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Stories of Bangladeshi workers
In 2015, Bangladesh agreed to send women workers to Saudi Arabia. After the
agreement was signed, 21,000 women were sent to KSA that year, 68,000 more
in 83,000 ,2016 in 83,000 ,2017 in 62,578 ,2018 in 2019 and 10,930 in 2020 before the
COVID19- pandemic broke out.
One migrant worker told ImpACT: “Opening a bank account, just like
traveling or quitting work, needs our employer’s official request to the
authorities. Most of the time, our employers are not willing to give us
such a request, either because they don’t want us to open a bank
account or because they don’t have the time to do it.”
After reports of mistreatment were received, the Ministry of Expatriates›
Welfare and Overseas Employment investigated, interviewing about 110 female
domestic workers who had returned from Saudi Arabia. In a summary of its
findings submitted to the relevant parliamentary standing committee, the
ministry said that 44 per cent of the women interviewed said they had not
been paid regularly.
It is the responsibility of the state to protect its inhabitants, but the kingdom
of Saudi Arabia leaves workers who make a significant contribution to the
development of the country at the mercy of employers. Social media videos
show Pakistani migrant workers appealing to the government of Pakistan for
help.
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VII. Action needed
International human rights organizations recognize the major human rights
violations in Saudi Arabia, but not enough action has been taken. The International
Labour Organisation has issued many reports on wages, rights and working
conditions but its recommendations have not been implemented.
Although the monarchy has ratified several international conventions on labour,
including the Protection of Wages Convention of 2020, implementation has yet to
occur.
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International human rights
organizations, including national
and local bodies in Saudi Arabia
and the countries that send
migrants to the kingdom, must
come together to demand an
end to a discriminatory and
archaic system of governance
that allows systemic abuse of
migrants. All types of foreign
workers have a right to fair,
timely wages; independent
bank accounts; and the ability
to borrow money if they have
sufficient financial resources.
Without these rights, migrants
cannot achieve the financial
health for which they traveled.
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